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FedEx pursues lawsuit against bankrupt ATA

July 21, 2008

FedEx Corp. has asked a bankruptcy judge to allow it to sue ATA Airlines Inc. for breaching a contract to carry military personnel.

The filing comes a month after ATA sued FedEx, claiming that it was forced into bankruptcy when FedEx notified ATA that the contract would end this fall.

ATA was obligated to continue carrying troops until the contract ended Sept. 30, the FedEx suit says. Memphis-based FedEx contends it was obligated to file the claim to defend itself against claims made in ATA's suit.

ATA's parent, Global Aero Logistics, moved its Indianapolis headquarters last fall to the Atlanta area-home of Global's other principal carrier, World Airways.

ATA shut down suddenly on April 3 and filed for bankruptcy protection. The suit on June 11 sought $180 million in damages from Fed Ex.

FedEx's suit was reported yesterday by Bloomberg.

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